What Is an Earnest Money Deposit and How Much Should I Offer in Carmel Valley?
Buyer Resources | Felicia Lewis Group | Carmel Valley (92130)
An earnest money deposit is the good faith funds a buyer submits after an offer is accepted to show the seller they are serious about completing the purchase. It is not an additional cost on top of your down payment. It is applied toward your total funds due at closing, so you are not writing an extra check. What it does is signal your commitment, and in a competitive market like Carmel Valley, that signal matters.
In 92130, Felicia Lewis Group recommends offering 3 percent of the purchase price as your earnest money deposit. That is the number that reads as serious to sellers and their agents in this market. A lower deposit can raise questions about a buyer's financial readiness or level of commitment, which is the last thing you want when you are competing for a well-priced home in a desirable sub-neighborhood. Coming in at 3 percent positions your offer as credible before a seller even reads the rest of the terms.
When Is the Deposit Due and How Is It Protected?
The deposit is typically due within 3 business days of offer acceptance and is held in escrow, not released to the seller. Your funds are protected by the contingencies written into your contract. As long as you are acting in good faith and within the terms of your agreement, there are defined circumstances under which you can cancel and recover your deposit. Understanding those protections is part of what Felicia Lewis Group walks every buyer through before they write an offer.
If you are getting ready to make an offer on a Carmel Valley home and want to understand exactly how your earnest money deposit works within the full offer strategy, Felicia Lewis Group is happy to walk you through it with no pressure and no obligation.
*Felicia Lewis, Team Lead | Broker Associate
Felicia Lewis Group | 858.876.8565 | felicialewisgroup.com
